1. Charitable Contributions Of Clothing And Household Items. As of August 17, 2006, no deduction will be allowed for charitable contributions of clothing or household items, unless the items are in “good used condition or better.” “Household items” includes furniture, furnishings, electronics, appliances, linens, and other similar items. It does not include food, paintings, antiques, and other objects of art, jewelry, gems or collections. Stay tuned for guidance from the IRS regarding the definition of “good used condition or better.”
   
2. New Recordkeeping Requirements For Contributions Made In Cash Or Check. Beginning in 2007, in order to deduct a charitable contribution of less than $250 made by cash, check, or other monetary means, the contribution must be supported by 1) a bank record (e.g., a cancelled check), or 2) a receipt, letter or other written communication from the charity showing the name of the donee organization, the date of the contribution, and the amount of the contribution. Donations made through payroll deduction will be considered to be substantiated if the taxpayer retains the paystub showing the deduction. Without these records, taxpayers are allowed no deduction at all, regardless of amount. As a point of interest, this applies to such things as the church plate and the collection cans found outside supermarkets, for example. Since a cancelled check satisfies these new requirements, you should consider replacing your cash contributions with a check. The rules for contributions in excess of $250 remain unchanged. Taxpayers will also need a written receipt including a statement indicating whether or not goods or services were received in return for the contribution.
   

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